The Federal Government sees a bright future for Australia's uranium industry, despite an independent report that shows a decline in global nuclear power production.

That is being attributed to a greater use of renewable energy sources and concerns about nuclear energy after the disaster at the Fukushima nuclear power plant in March 2011.

The World Nuclear Industry Status Report says it's dropped from 17 per cent of world energy in 1993 down to 10 per cent today.

That is being attributed to a greater use of renewable energy sources and concerns about nuclear energy after the disaster at the Fukushima nuclear power plant in Japan, March 2011

It's also found that global use of nuclear as a primary energy source is down 4.5 per cent, the lowest level since 1984.

But Resources Minister Gary Gray has shrugged off the figures and says new nuclear reactors in China and India, and the restarting of reactors in Japan, will drive growth in uranium mining in Australia.

Mr Gray agrees the uranium spot price is low, but is optimistic that it will rise as decommissioning of old nuclear weapons winds down.

"We see a decline in supply due to the gradual end of the conversion of old weapons material into nuclear material for civilian reactors.

"That of itself will create upward price from where it is current, around $US40 (a pound)."

At the time of writing, the spot price for uranium had dropped to $US38 a pound.

Australia has massive reserves of high quality uranium, around 33 per cent of known global supplies.

In 1984, the then Federal Labour Party implemented the 'three mines uranium policy', which saw production limited to two mines in the Northern Territory, Ranger and Nabarlek, and Olympic Dam in South Australia.

That policy was overturned in 2007 and some states followed suit when Liberal and National Parties were voted in.

After a change of policy in Western Australia, the Toro uranium mine at Wiluna is scheduled to go ahead next year, 2014.

That's mirrored by the Queensland Government which is now actively promoting a uranium mining industry.

And after years of classing it as a toxic product, the New South Wales Government will now allow exploration for uranium, although nothing definitive policy-wise has been released on the likelihood of uranium mines in that state.

At least 1,000 uranium exploration licences been issued across the country in recent times. At least 500 of those were for Queensland and 395 in South Australia.